Semiconductor Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Semiconductor Industry Market is Segmented by Semiconductor Devices (Discrete Semiconductors, Optoelectronics, and More), Technology Node (< 3nm, 3nm, 5nm, 7nm, 16nm, 28nm, and >28nm), Business Model (IDM, and Design/ Fabless Vendor), End-User Industry (Automotive, Communication (Wired and Wireless), Consumer, Industrial, and More), and Geography (North America, South America, Europe, Asia-Pacific, and Middle East and Africa).

Semiconductor Industry Market Size and Share

Compare market size and growth of Semiconductor Industry with other markets in Technology, Media and Telecom Industry

Semiconductor Industry Market Analysis by Mordor Intelligence

The global semiconductor market size was valued at USD 702.44 billion in 2025 and is forecast to reach USD 950.97 billion by 2030, expanding at a 6.25% CAGR across the period. Unit shipments were 1.04 trillion in 2025 and are projected to climb to 1.43 trillion by 2030 at a 6.47% volume CAGR. Momentum stems from concurrent waves of artificial intelligence (AI), edge computing, and automotive electrification that are reshaping design priorities, capital-expenditure patterns, and supply-chain footprint. Asia-Pacific continued to anchor more than four-fifths of semiconductor market revenue in 2024, while foundry leaders raced to commercialize 3 nm and 2 nm processes that meet the power-efficiency demands of next-generation data-center and automotive platforms. At the same time, heterogeneous integration and chiplet-based architectures reduced development cost profiles and accelerated time-to-market, supporting a new layer of ecosystem specialization. Water, power, and talent constraints in advanced fabs incentivized geographic diversification, driving the semiconductor market toward a more distributed yet deeply interconnected production model. 

Key Report Takeaways

  • By semiconductor device, integrated circuits captured 83.2% of the semiconductor market share in 2024; the same segment is projected to post a 6.7% CAGR through 2030.
  • By technology node, the 5 nm platform led with 34.3% of the semiconductor market share in 2024, while the 3 nm node is projected to expand at an 8.7% CAGR to 2030.
  • By business model, the fabless segment accounted for 67.8% share of the semiconductor market size in 2024 and is forecast to grow at an 8.1% CAGR through 2030.
  • By end-user industry, communication equipment held 28.7% of the semiconductor market size in 2024; government-grade aerospace and defense applications register the fastest projected CAGR at 7.36% to 2030.
  • By geography, Asia-Pacific generated 81.3% of total revenue in 2024 and is pacing the global semiconductor market with a regional CAGR of 6.9% between 2025-2030. 

Segment Analysis

By Semiconductor Devices: Integrated circuits sustain leadership amid specialization

Integrated circuits retained their foundational role in the semiconductor market, and their 83.2% revenue position in 2024 underscored the primacy of high-density digital logic and memory in an AI-first economy. This sub-segment is projected to grow at a 6.7% CAGR through 2030, underpinned by server-class CPUs, AI accelerators, and advanced analog front-ends that regulate power consumption in electric vehicles. Dynamic random-access memory suppliers continued to prioritize high-bandwidth variants tuned for AI workloads, while analog IC houses capitalized on the electrification wave across mobility and industrial automation. 

Discrete semiconductors, although a smaller share of the semiconductor market, served mission-critical roles in voltage regulation, motor-drive efficiency, and radio-frequency switching. Wide-bandgap transistors based on silicon-carbide and gallium-nitride technologies moved further into traction inverters and fast-charging stations. Optoelectronics revenue benefited from the rollout of machine-vision cameras and lidar assemblies, whereas the sensors and MEMS landscape expanded alongside industrial Internet of Things gateways. Competitive dynamics favored niche depth over portfolio breadth: vendors refined value propositions around performance per watt, extended temperature ranges, and functional safety certification rather than pursuing volume across every device type.

Note: Segment shares of all individual segments available upon report purchase

By Technology Node: 3 nm surges while mature nodes hold essential roles

Node-transition economics bifurcated the semiconductor market into leading-edge and mature-node camps. The 5 nm family delivered 34.3% revenue share in 2024; however, customer migration toward 3 nm processes is forecast to deliver an 8.7% CAGR from 2025-2030. TSMC reported that its 3 nm platform reached mass-production yields and provided 20% of corporate revenue in late 2024. Smartphone application processors and AI-centric system-on-chips were first adopters, and automotive original-equipment manufacturers signaled road-map alignment once functional-safety libraries finish qualification. 

Mature geometries at 28 nm and above retained healthy utilization thanks to power-management ICs, microcontrollers, and RF front-ends whose specifications rely more on analog performance, radio characteristics, or embedded Flash, not transistor density. GlobalFoundries, UMC, and specialty foundries leveraged that demand, frequently adding value through radio-frequency optimizations or embedded non-volatile memory. Capital-expenditure differentials widened: greenfield leading-edge fabs crossed USD 20 billion per site, while brownfield mature-node expansions proceeded at lower cost, enabling emerging regions to enter the manufacturing landscape with less financial risk.

By Business Model: Fabless design houses extend innovation lead

Fabless design entities commanded 67.8% revenue share within the semiconductor market in 2024 and are projected to log an 8.1% CAGR to 2030. The model unlocks agility in target-application focus, allowing companies such as NVIDIA and Qualcomm to iterate on AI and connectivity architectures while outsourcing production to foundries with best-in-class process nodes. Chiplet adoption further amplified fabless advantages by lowering monolithic die sizes, thereby reducing tape-out risk and enabling rapid respins for emerging workloads. 

Integrated device manufacturers (IDMs) preserved competitive moats in memory and x86 processors, yet even stalwarts pursued hybridized strategies. Intel’s IDM 2.0 plan combined internal wafer capacity with foundry services, while joint-venture agreements allowed shared risk in advanced-node deployments. Design-for-manufacturability teams increasingly coordinated across corporate lines, creating value chains where IP libraries, test-interface standards, and advanced packaging nodes could be licensed or shared to compress development cycles.

Semiconductor Industry

Note: Segment shares of all individual segments available upon report purchase

By End-user Industry: Communications remain core; aerospace and defense accelerate

Communications infrastructure and devices represented 28.7% of semiconductor market revenue in 2024, reflecting 5G base-station densification, fiber-to-the-home rollouts, and the first deployments of 6G testbeds. The appetite for low-latency connectivity elevated demand for front-haul optical-module ICs, packet-processing ASICs, and millimeter-wave transceivers. Across the forecast window, growth shifts toward multi-function radios that integrate satellite, sub-6 GHz, and Wi-Fi 7 bands into common basebands. 

Aerospace and defense spending is poised for a 7.36% CAGR to 2030, transforming into the fastest-growing vertical. Sovereign supply-chain priorities encouraged domestic sourcing of radiation-hardened logic, secure memory, and high-temperature power devices. Automotive semiconductor content remained on a double-digit trajectory as electrification, advanced driver-assistance systems, and zonal architecture intersected. Data-center build-outs rejuvenated the computing segment, while industrial demand pivoted to predictive-maintenance sensors and real-time control microcontrollers that embed AI inference at the factory edge.

Geography Analysis

Asia-Pacific held 81.3% of semiconductor market revenue in 2024 and is projected to grow at a 6.9% CAGR through 2030. Taiwan’s foundries maintained a dominant share of 3 nm and 5 nm wafer starts, while South Korean leaders accounted for the bulk of DRAM and NAND output. Japan stayed indispensable in photoresists, silicon wafers, and precision materials. Mainland China, despite export-control headwinds, expanded mature-node capacity and invested in indigenous EDA tools, which may account for over one-quarter of the 28 nm supply by 2025.[3]Government of the Netherlands, “Export Control Measures for Semiconductor Equipment,” government.nl  

North America experienced a resurgence in domestic fab construction underpinned by the CHIPS and Science Act. Commitments totaling USD 540 billion spanned logic, memory, and advanced packaging, complemented by workforce-training alliances with community colleges and research universities. The region’s chip-design prowess continued to exceed 50% of global fabless sales, with ecosystem depth ranging from IP cores to semiconductor capital equipment. 

Europe’s semiconductor market strategy emphasized strategic autonomy. The European Chips Act aimed for a 20% global share by 2030 and concentrated on automotive, industrial, and compound-semiconductor niches suited to regional strengths. New cluster investments in Germany, France, and the Netherlands focused on gallium-nitride power devices and silicon-carbide MOSFETs for renewable-energy inverters. Emerging hubs in India, Brazil, and Gulf Cooperation Council states targeted mature-node logic, outsourced assembly-and-test (OSAT) services, and specialty analog lines. India’s incentive package promoted a full-stack ecosystem from design to packaging, responding to domestic semiconductor imports that reached USD 20.19 billion in 2024.

Semiconductor Industry

Competitive Landscape

The semiconductor market exhibits a high-concentration structure in leading-edge foundry, GPU, and HBM segments, contrasted with fragmentation in analog, power discretes, and specialty sensors. TSMC, Samsung Foundry, and Intel collectively monitored the 2 nm and 1.8 nm road-map milestones while competing on advanced packaging throughput. Apple expanded vertical integration by introducing self-designed cellular modems, and several automotive OEMs funded ASIC development centers to safeguard supply continuity. 

Chiplet adoption redrew competitive boundaries: interface standards such as Universal Chiplet Interconnect Express (UCIe) enabled third-party IP blocks to integrate into multivendor packages. Marvell, Intel, and Synopsys demonstrated cross-vendor interposer prototypes in 2025, shrinking time-to-qualification for heterogenous systems. Access to precision plating, micro-bump, and hybrid-bonding capacity emerged as a determinant of leadership, partly shifting bargaining power from wafer fabs to advanced packaging houses. 

Emerging disruptors addressed lithography cost ceilings with alternative tooling. IBM’s Albany NanoTech complex achieved new yield benchmarks on Low-NA and High-NA EUV flows that promise to simplify patterning at 7 nm, 5 nm, and 2 nm nodes.[4]IBM Research, “New EUV Patterning Yield Benchmarks,” research.ibm.com Concurrently, several startups pursued nanoimprint lithography for specialized markets where the tooling cost outweighs volume. Across analog segments, fab-lite suppliers leveraged proprietary process recipes at specialty foundries to protect margins against commoditization.

Semiconductor Industry Industry Leaders

  1. Intel Corporation

  2. Samsung Electronics Co. Ltd

  3. Qualcomm Incorporated

  4. SK Hynix Inc.

  5. Taiwan Semiconductor Manufacturing Company (TSMC) Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Semiconductor Industry Concentration
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Recent Industry Developments

  • May 2025: TSMC raised its U.S. investment commitment to USD 165 billion, spanning three logic fabs, two packaging plants, and a major R&D center.
  • April 2025: GlobalFoundries unveiled a USD 16 billion U.S. expansion plan focused on mature-node and RF capacity for automotive and industrial customers.
  • March 2025: TSMC entered joint-venture talks with NVIDIA, Broadcom, Qualcomm, and AMD aimed at aligning advanced-packaging capacity with AI accelerator demand.
  • March 2025: IBM and partners at the Albany NanoTech Complex recorded yield breakthroughs for High-NA EUV lithography that will underpin sub-2 nm node commercialization.

Table of Contents for Semiconductor Industry Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Explosive data-center demand for AI accelerators
    • 4.2.2 Ubiquitous edge-AI in consumer IoT devices
    • 4.2.3 Automotive zonal-architecture migration (EV and ADAS)
    • 4.2.4 On-shoring incentives in US, EU, India and MENA
    • 4.2.5 Heterogeneous integration’s cost-down inflection
    • 4.2.6 Chiplet marketplace commercialization (UCIe/IP reuse)
  • 4.3 Market Restraints
    • 4.3.1 Persistent lithography bottlenecks below 2 nm
    • 4.3.2 Geopolitical export-control escalations (US-CN, CN-NL)
    • 4.3.3 Water and power scarcity in foundry clusters
    • 4.3.4 Talent crunch in sub-5 nm process engineering
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter’s Five Forces Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Impact of Macroeconomic factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE AND VOLUME)

  • 5.1 By Semiconductor Devices
    • 5.1.1 Discrete Semiconductors
    • 5.1.1.1 Diodes
    • 5.1.1.2 Transistors
    • 5.1.1.3 Power Transistors
    • 5.1.1.4 Rectifier and Thyristor
    • 5.1.1.5 Other Discrete Devices
    • 5.1.2 Optoelectronics
    • 5.1.2.1 Light-Emitting Diodes (LEDs)
    • 5.1.2.2 Laser Diodes
    • 5.1.2.3 Image Sensors
    • 5.1.2.4 Optocouplers
    • 5.1.2.5 Other Device Types
    • 5.1.3 Sensors and MEMS
    • 5.1.3.1 Pressure
    • 5.1.3.2 Magnetic Field
    • 5.1.3.3 Actuators
    • 5.1.3.4 Acceleration and Yaw Rate
    • 5.1.3.5 Temperature and Others
    • 5.1.4 Integrated Circuits
    • 5.1.4.1 Analog
    • 5.1.4.2 Micro
    • 5.1.4.2.1 Microprocessors (MPU)
    • 5.1.4.2.2 Microcontrollers (MCU)
    • 5.1.4.2.3 Digital Signal Processors
    • 5.1.4.3 Logic
    • 5.1.4.4 Memory
  • 5.2 By Technology Node (This is only applicable for IC segment and not for Discrete and Optoelectronics Segments)
    • 5.2.1 < 3nm
    • 5.2.2 3nm
    • 5.2.3 5nm
    • 5.2.4 7nm
    • 5.2.5 16nm
    • 5.2.6 28nm
    • 5.2.7 > 28nm
  • 5.3 By Business Model
    • 5.3.1 IDM
    • 5.3.2 Design/ Fabless Vendor
  • 5.4 By End-user Industry
    • 5.4.1 Automotive
    • 5.4.2 Communication (Wired and Wireless)
    • 5.4.3 Consumer
    • 5.4.4 Industrial
    • 5.4.5 Computing/Data Storage
    • 5.4.6 Government (Aerospace and Defense)
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Russia
    • 5.5.3.6 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 South Korea
    • 5.5.4.4 India
    • 5.5.4.5 ASEAN
    • 5.5.4.6 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 GCC
    • 5.5.5.1.2 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Intel Corporation
    • 6.4.2 Samsung Electronics Co., Ltd.
    • 6.4.3 Taiwan Semiconductor Manufacturing Company (TSMC) Ltd.
    • 6.4.4 SK hynix Inc.
    • 6.4.5 Micron Technology Inc.
    • 6.4.6 Broadcom Inc.
    • 6.4.7 Qualcomm Inc.
    • 6.4.8 NVIDIA Corporation
    • 6.4.9 Advanced Micro Devices (AMD) Inc.
    • 6.4.10 STMicroelectronics N.V.
    • 6.4.11 Infineon Technologies AG
    • 6.4.12 NXP Semiconductors N.V.
    • 6.4.13 Analog Devices Inc.
    • 6.4.14 onsemi (ON Semiconductor Corp.)
    • 6.4.15 Renesas Electronics Corp.
    • 6.4.16 Microchip Technology Inc.
    • 6.4.17 Rohm Co., Ltd.
    • 6.4.18 Marvell Technology Inc.
    • 6.4.19 MediaTek Inc.
    • 6.4.20 ASE Technology Holding Co., Ltd.
    • 6.4.21 Amkor Technology Inc.
    • 6.4.22 Jiangsu Changjiang Electronics Technology Co., Ltd.
    • 6.4.23 Powertech Technology Inc.
    • 6.4.24 Teradyne Inc.
    • 6.4.25 Advantest Corp.
    • 6.4.26 KLA Corp.
    • 6.4.27 Applied Materials Inc.
    • 6.4.28 ASML Holding N.V.
    • 6.4.29 Lam Research Corp.
    • 6.4.30 Tokyo Electron Ltd.
    • 6.4.31 SCREEN Holdings Co., Ltd.
    • 6.4.32 Nikon Corp.
    • 6.4.33 Hitachi High-Tech Corp.
    • 6.4.34 Lasertec Corp.
    • 6.4.35 GlobalFoundries Inc.
    • 6.4.36 United Microelectronics Corp.
    • 6.4.37 Semiconductor Manufacturing International Corp. (SMIC)
    • 6.4.38 Hua Hong Semiconductor Ltd.
    • 6.4.39 Powerchip Semiconductor Manufacturing Corp.
    • 6.4.40 Silicon Motion Technology Corp.
    • 6.4.41 Shin-Etsu Chemical Co., Ltd.
    • 6.4.42 GlobalWafers Co., Ltd.
    • 6.4.43 Indium Corp.
    • 6.4.44 DuPont de Nemours Inc.
    • 6.4.45 BASF SE
    • 6.4.46 Henkel AG & Co. KGaA
    • 6.4.47 Resonac Holdings Corp.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Semiconductor Industry Report Scope

Semiconductors are essential technology enablers that power many advanced digital devices. The global semiconductor industry is set to continue its robust growth well into the next decade due to advancements in emerging technologies, such as autonomous driving, artificial intelligence (AI), 5G, and the Internet of Things (IoT), coupled with consistent spending on R&D and competition among prominent players.

The semiconductor industry is segmented by semiconductor devices (discrete semiconductors, optoelectronics, sensors, and integrated circuits), semiconductor equipment (front-end equipment and back-end equipment), semiconductors materials (fabrication and packaging), semiconductor foundry market, outsourced semiconductor assembly test services (OSAT) market, and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Semiconductor Devices Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics Light-Emitting Diodes (LEDs)
Laser Diodes
Image Sensors
Optocouplers
Other Device Types
Sensors and MEMS Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits Analog
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
Logic
Memory
By Technology Node (This is only applicable for IC segment and not for Discrete and Optoelectronics Segments) < 3nm
3nm
5nm
7nm
16nm
28nm
> 28nm
By Business Model IDM
Design/ Fabless Vendor
By End-user Industry Automotive
Communication (Wired and Wireless)
Consumer
Industrial
Computing/Data Storage
Government (Aerospace and Defense)
By Geography North America United States
Canada
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Russia
Rest of Europe
Asia-Pacific China
Japan
South Korea
India
ASEAN
Rest of Asia-Pacific
Middle East and Africa Middle East GCC
Rest of Middle East
Africa South Africa
Rest of Africa
By Semiconductor Devices
Discrete Semiconductors Diodes
Transistors
Power Transistors
Rectifier and Thyristor
Other Discrete Devices
Optoelectronics Light-Emitting Diodes (LEDs)
Laser Diodes
Image Sensors
Optocouplers
Other Device Types
Sensors and MEMS Pressure
Magnetic Field
Actuators
Acceleration and Yaw Rate
Temperature and Others
Integrated Circuits Analog
Micro Microprocessors (MPU)
Microcontrollers (MCU)
Digital Signal Processors
Logic
Memory
By Technology Node (This is only applicable for IC segment and not for Discrete and Optoelectronics Segments)
< 3nm
3nm
5nm
7nm
16nm
28nm
> 28nm
By Business Model
IDM
Design/ Fabless Vendor
By End-user Industry
Automotive
Communication (Wired and Wireless)
Consumer
Industrial
Computing/Data Storage
Government (Aerospace and Defense)
By Geography
North America United States
Canada
South America Brazil
Argentina
Rest of South America
Europe Germany
United Kingdom
France
Italy
Russia
Rest of Europe
Asia-Pacific China
Japan
South Korea
India
ASEAN
Rest of Asia-Pacific
Middle East and Africa Middle East GCC
Rest of Middle East
Africa South Africa
Rest of Africa
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Key Questions Answered in the Report

What is the current size of the semiconductor market and its growth outlook?

The semiconductor market generated USD 702.44 billion in 2025 and is set to reach USD 950.97 billion by 2030, reflecting a 6.25% CAGR.

Which region will drive most semiconductor market growth through 2030?

Asia-Pacific remains the growth anchor, sustaining 81.3% revenue in 2024 and advancing at a 6.9% regional CAGR during 2025-2030.

How fast is 3 nm technology expected to grow?

Revenue from 3 nm wafers is forecast to expand at an 8.7% CAGR through 2030, outpacing all other node categories.

Why are chiplet and heterogeneous-integration strategies gaining traction?

Chiplets cut development cost 40–60%, shorten time-to-market up to 50%, and enable specialized IP reuse across vendors, driving broad ecosystem adoption.

What impact will on-shoring incentives have on supply-chain risk?

Subsidy-backed capacity additions in the United States, Europe, and India diversify geographic production hubs, thereby mitigating single-region disruption risk over the medium term.

Which end-user vertical shows the fastest semiconductor demand growth?

Government aerospace and defense applications are projected to post a 7.36% CAGR to 2030 as nations prioritize a secure, domestic semiconductor supply.

Page last updated on: June 26, 2025

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